By: Robin Hollis, Regional Director
Feeling confused since the passage of the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) when it comes to ID retention? You’re not alone. Section 213 of S. 2155 appears to instruct that when opening an account online, you are required to delete a copy or image of the member’s identification card after using it for the following purpose:
• Verifying the authenticity of the identification card
• Verifying the identity of the person
• Complying with the credit unions BSA’s customer identification program requirements
Some credit unions have interpreted section 213’s deletion language incorrectly to encompass retaining copies of ID’s for any purpose as non-compliance with the law. Here is what we know about the law and its intent:
• Section 213 was intended to make opening accounts online easier by removing road blocks associated with state laws that did not allow for the coping /scanning of ID’s.
• Section 213 only addresses online account activity. It does not address in person account activity.
• Section 213 is not a part of US code that addresses regulatory authority, enforcement and penalties. It is a free standing provision.
When it comes to retaining copies of ID’s:
• Follow Section 213 as it relates to online account activity.
• While not required, you may retain a copy or image of the member’s identification card to aid in verifying identities for transactional purposes and to comply with BSA’s customer identification program, as it relates to in person transactions as long as other laws do not prohibit reproduction or retention of the identification card (i.e. military identification cards, and state law).
• You should keep the copy or image of the member’s identification card separate from the loan file to remain compliant with fair lending regulations.